Skip to main content

tv   Bloomberg Technology  Bloomberg  April 9, 2019 11:00pm-12:00am EDT

11:00 pm
♪ emily: i'm emily chang in san francisco. this is "bloomberg technology." coming up in the next hour, despite a broader selloff, tech stocks are within striking distance of all-time highs. we will discuss what is behind the rally. plus, representatives from google and facebook testified before congress on one of their biggest challenges, the rise of hate speech and white nationalism and how to stop it. and china intent on banning cryptocurrency mining.
11:01 pm
it is now listed among several industries the country intends to illuminate because "they seriously wasted resources." our big story come the s&p 500 500 halted and eight-day rally with the biggest drop in two weeks. tech stocks are at all-time highs. the s&p 500 is up 20% this year. what is looking at most promising? faang and semi conductors. i want to bring in our guest. what is the main reason for the selloff broadly today? >> you have to step back. the s&p had just finished a streak of eight days in a row where it had risen. that is the longest streak in 18 months. and no matter what sort of gauge
11:02 pm
momentum you look at the stock market through, it was clear that stocks were going to go up every day. the market was due for a pullback. then you layer on top of that the imf came out with its forecast for global economic growth. you had disappointing data from the u.s. in the form of the job's index posting a big drop. and the trump administration making some noises about possibly considering tariffs on europe. so i think the market was due for a pullback. and when you layer this on top of those other stories, it makes it worse than it would have been. emily: i have a chart and the bloomberg that shows the faang stocks rebounding from their lows since the beginning of december. which of the tech stories in particular do you think are the standouts? facebook for one certainly can't avoid any bad news it seems. david: it gets tons of bad news and people still want to buy the stock.
11:03 pm
that is the surprise of it. apple similarly, people were , many, were underwhelmed by the announcement of the services a week or two ago but the stock is since.mbed steadily i am surprised by the overall strength of the sector on the other hand. with every passing day we are entering more into a truly digital economy. and these of the companies that lead and that economy, in the story. every other company in the economy is trying to be like these companies. so i don't think it is crazy these companies are doing well. i think facebook got more bad news than the market is pricing in, however. emily: apple shares did end up closing below today, but they were on track for a big rally. defyingou think tech is the trends in the broader market? >> in general, there is a lot of
11:04 pm
optimism, and that is because the federal reserve has indicated it is on hold with interest rate hikes. and when you look at the trade concernes, there was today about the possibility of europe, there being tensions there. investors in general are hoping for the light at the end of the tunnel soon as far as trade issues with china. and anything with some sort of peace when it comes to the trade tension with china, i think it bodes well, especially for semiconductor stocks, a lot of exposure to asia and china, and looking at declines of 20% plus for the first three quarters of the year. but i think people are realizing that, as david said, this is a digital economy. semiconductors can go through boom and bust cycles, but in the long run demand will be there.
11:05 pm
the estimates for next year are pretty strong. and any chance the issues that china will be resolved, it will cause earnings estimates to go up a little bit. i think investors are trying to get ahead of that trend. emily: thank you so much for stopping by. david kirkpatrick will be with a bit later in the show. we will be talking about, what else, but facebook. slack's value has risen to $16 billion in pre-listing deals. ahead of their trading debut, some investors are buying stock for more than double the price of slack's last funding round, atch value the company prices were held as high as 25 $7.1 billion. or $26 apiece as the company plans to directly list its shares on the new york stock exchange in june or july. joining us to discuss our our guests. what is happening here? >> slack is preparing to go public by a direct listing
11:06 pm
rather than a traditional ipo. like spotify did last year. in preparation for doing so, there is a thing spotify did that slack it seems is doing as well, which is starting to release some of its stock on the secondary market, starting to allow some sales to go through with the idea of two goals, to do price discovery around which range they want to price their shares when they go public, and also trying to manage volatility ahead of the listing. this is based on reporting we have done with people familiar, checked the sales, company not commenting, but it seems like demand is really high. the last time slack raised money was in august. the shares were almost $12 apiece. now, based on some of the sales we have seen go through, which granted it could be small one-off type stuff, but it does seem to indicate an interest in
11:07 pm
slack stock double the price. emily: and the opposite of what we are seeing with interest -- pinterest, which is in the middle of a roadshow, it is aiming to raise money at $3 billion less than its last private funding valuation. so why is there so much enthusiasm about slack in particular? ellen: investors see opportunity for a lot of growth. they have always had strong performance, a lot of people paying for the service. they have a free version but people pay for access to slack. people see it as a strong software bed. there are questions remain given lyft's stock price performance in the last week. emily: talk about how slack will be different from a traditional ipo route? what happens over the next few weeks and months? ellen: it seems like slack is preparing to list on the new york stock exchange probably
11:08 pm
june or july, although as these things go, we never really know how it will happen until it does. unlike a traditional ipo, the direct listing means there is no lockup period, and there is no additional stock leapt into the market. it is just current shareholders have the ability to sell. emily: current shareholders and employees can sell right away? >> yes, right away. very different for a lot of employees were waiting for the ipo moment to realize the value they have made in their equity. emily: what is the motivation for that? ellen: it is different with every company. direct listings, like with spotify, work well with companies that have a few things going for them. one, if they have cash on hand . two, if they don't have to do a lot of publicity, a household name -- broad range of consumer service, slack a little bit, more business focused, but generally something many people have exposure to. they know it.
11:09 pm
they like it. the product is well made. they don't need to raise additional capital and don't need to do the marketing associated with an ipo, then they can do this instead which tends to be favorable if you meet those qualifications. everyone has said slack is in a good position to do this. some of the other companies that have been floated as potential direct listings, if this type of things become more popular, for example, airbnb. similarly, strong performing companies with a lot of consumer -- really well-known. emily: thank you so much. we will continue to watch for your reporting on slack. thank you. coming up, softbank hiring a trio of industry veterans to oversee a new $5 billion technology fun headed by the ceo. our exclusive interview with him is next. if you like bloomberg news, check us out on the radio and listen on the bloomberg app, and in the u.s. on sirius xm. this is bloomberg. ♪
11:10 pm
11:11 pm
11:12 pm
emily: facebook has committed to changing its terms and services to meet demands by e.u. regulators to show users how their data is sold to third parties and how their accounts can be closed or disabled. the european union said failure to make the changes could lead to possible sanctions. meantime major move for , a softbank. the japanese conglomerate has tapped industry veterans from third point and j.p. morgan to oversee a $5 billion technology fund focused on latin america. earlier, i spoke with the softbank group coo about the new
11:13 pm
ind and about interest opportunities in the region. take a listen. >> you look at the size of the market, the latin american market is twice the size of india and china, so it is in the right place, right population, right technology adoption. we are looking at tech companies that are growing, that are leveraging data and artificial intelligence to disrupt traditional models. in the first few weeks we are looking at 140 companies so it is above expectations for potential investment we plan to launch in the latin american region. emily: wow. 140 companies in a few weeks. the vision fund is raising record amounts of capital at a time when dry powder is already at record highs. how does softbank stay disciplined and put so much capital to work at the same time? marcelo: we have been quite disciplined in terms of a clear
11:14 pm
investment thesis m&a, and we are looking for that company that has the ability to leverage artificial intelligence, leverage data to disrupt traditional business models to enhance people's lives. because of artificial intelligence, the level of disruption in the next few years is significant. and therefore, pretty much every industry is in the midst of disruption, so choose that when a company we can put a capital and our growth strategy, make it bring them into her echo ecosystem and help them grow. on the business fund level we have 70 companies we have invested. they are doing great. we are applying this logic of an discipline to the same in latin america. the vision fund has traditionally focused on india, china, and the u.s., and now we have decided to focus on latin
11:15 pm
america because of the size of the market and the same technology trends applied to that region of the world. emily: tell us about your day today. how much time will you spend on this latin american part of your job and your duties as coo of softbank group? marcelo: we are well organized within the softbank ecosystem. we have a ceo division fund in charge of managing division managing division fund. i run softbank group international, and most of the operating groups. we have a majority ownership such as sprint or arm or also boston dynamics. i am announcing this new technology fun. we are spending much time in my core isca, but running companies in the group and eating the coo of the entire group. we work in the partnership. we are the four leaders in the
11:16 pm
company, and we basically are accommodate responsibilities accordingly. we have an amazing group of people throughout the world, including investors. we are busy. there is a lot of activity at the same time. we are applying rigor. emily: you have a big ipo coming up. softbank a huge investor in uber. what are your expectations for uber's ipo? marcelo: we try not to comment on a company's potential, but companies in which we have invested in their ipo's, but what we do, we have a lot of potential ipo's coming in the future due to the fact that we have invested in a lot of tech companies growing at an amazing rate. so we are hoping that the investments we have made are going to be translated into great returns for the current investors in our funds and
11:17 pm
great returns to the new shareholders of those ipo's. i think uber is a fantastic company. travis did an incredible job disrupting transportation and and i think they have done a great job taking the company to another level. so whenever uber decides to do an ipo, we are sure he will be it will be a great ipo because it is a great company. emily: you are reportedly getting one of softbank's two uber board seats. what is happening with that? marcelo: it is complicated due to the fact that we invest in so many different companies and we are a foreign direct investor and all of that is in process through different government agencies. but to be quite fair, we believe that in many cases because we are investors in so many different areas, that is why we have put other people on board . the company is doing great. management is doing great. and they already have quite a sizable board.
11:18 pm
emily: our interview there with the softbank coo. you can catch the full interview on bloomberg.com. we also talked about the pending sprint-t-mobile merger which appears to not be on a track for easy approval. coming up, twitter is also growing its global operations. how the social media company is attempting to capitalize on video content in the middle east. bloomberg tech is live streaming on twitter. check us out at technology and follow our breaking news network tictoc on twitter. this is bloomberg. ♪
11:19 pm
11:20 pm
♪ emily: while softbank is going to latin america, twitter is prioritizing the middle east and north africa. the social media company announced it has signed 16 premium content video agreements in the region, including with tv networks and sports channels as video advertising becomes a key revenue source for the company.
11:21 pm
bloomberg reports from dubai. >> twitter is expanding in the middle east and north africa region with more content partnerships. earlier we have seen them signed 16 agreements that include new and expanded deals with tv networks and clubs and broader agreements with current partners like formula one, vm sports, and others. new deals will also include contents from nbc group holdings , and this will manifest itself into recaps of regional flagship shows. sports programming as well. nbc alone generated 300 million views last year on the platform. the group, a current partner getting more action with expanded deals, generated more than 1.5 billion impressions on the last year on the platform. the social network considers
11:22 pm
saudi arabia the location of the most revenue for the region and is looking at egypt to expand next. emily: still with us to discuss further, david kirkpatrick and in the studio, selina wang who covers twitter. talk to us about the significant significance of these partnerships. selina: the middle east strategy is part of twitter's broader localization strategy. so in order for it to become ubiquitous for a place of what is happening now, they need unique content in each region that makes it feel local. so for instance, in the middle east, they are striking deals with the biggest entertainment and sports companies in the region. we have seen them do that in the u.s., across asia. in japan in particular, they have been successful at video content area. it is twitter's second-largest market. when we look at live video in general, the video category is extremely important to twitter.
11:23 pm
it is actually now the largest ad format and the fastest-growing one as well. advertisers love being able to brand themselves next to this premium content. emily: david, what do you think is the significance of twitter focusing on the middle east and north africa given all of the other priorities the company has and these very pressing issues around hate speech, harassment, violence on the platform in addition to the need to grow? david: they have to grow, and this is a great place to do it. there is no question they can't disregard political and speech-related challenges. they recognize they are real, and the company has been handling them better than some of their internet competitors. in terms of the middle east, the brand of twitter is super strong in that region. and, you know, when i look at the big picture, jack dorsey has always had this vision twitter
11:24 pm
was in some ways ultimately a media distribution platform. it is not the way we typically think of it. we think of a place you tweet and we kind of forget a lot of those tweets are linked to media, but it is becoming a media platform, video platform for the smartphone age. and when i heard heard about what they did today, i was quite impressed and feel like this is the kind of thing that could really take twitter to a new level of respect and consistency of results. certainly a globalizing company. are investors excited? >> twitter has to be a globalizing company. growth has been stagnant in the u.s. for several quarters. have double-digit growth in inne international markets, so they have to. it is good for twitter, but what
11:25 pm
they did in the middle east they did do in the u.s. we did see it impact daily active usage to some extent, but monthly active users still stagnant despite content deals. around the world twitter's biggest struggle is how did they get this overall pie of users to come to the platform every day. there is still a big gap between daily and monthly active users. they believe the answer is to strike these kinds of deals. even though they don't get big blockbuster deals like the nfl which they may lose to amazon year after year, they are going to be unique in terms of finding behind the scenes video shoots or after show talks and chats. so they are trying to find their niche within this broader space. emily: meantime, david, for a fun little story, we learned jack dorsey hasn't really been taking a salary, but his salary , symbolic of the
11:26 pm
140 characters that could be written in the initial iteration of a tweet. it is not unusual. i believe steve jobs was paid one dollar. many of these founders who make a lot in terms of equity elect to not have a salary. but what is your take on this? david: jack dorsey is a minimalist in every way. we also have just recently that he eats one meal a day. this is a guy who is just very, very, very disciplined, and he also, i would say, unusually sort of ethical in his own mind. recognizes he has made a lot on stock in a number of different companies including many we haven't heard about. but certainly twitter and square. he doesn't need the cash salary. he is willing to accept that. emily: and apparently he doesn't need the calories. i don't know how i could anchor a show with one meal a day. david kirkpatrick will be sticking with me. i will be with you after this break.
11:27 pm
selina wang, thanks for stopping by. coming up, big tech, what is under the capital lights once again, this time to talk about what it is doing to fight hate speech. we are going into this hearing next. this is bloomberg. ♪
11:28 pm
11:29 pm
11:30 pm
♪ emily: this is "bloomberg technology." i'm emily chang in san francisco. representatives from google and facebook testify before the how house judiciary committee they tuesday. showed up along with a handful of civil rights and right-wing activists to talk about the spread of hate crime and white nationalism in an online world. and, in the middle of it all, we learned that youtube's livestream of the hearing itself had to have its content disabled because it was flooded with hate speech. just listen to committee chair jerry nadler describe what was going on. >> these jews want to destroy all nations.
11:31 pm
i will not put a name. this illustrates part of the problem we are dealing with. >> could that be a hate hoax? >> what? >> could that be a hate hoax? >> all i know is what i just read. emily: the other voice you heard was texas congressman louie gohmert asking if the comments were a hoax. all of this during a hearing about fighting hate speech. still with us is david kirkpatrick, and of journalist who covers alphabet, and another journalist. this hearing was still political more political than some might have expected, and very little focused on tech actually. >> that is exactly right. we have seen this in a couple of hearings with tech, other issues. the format sort of fights the goal. i believe there were eight witnesses, panelists to take various questions on all kinds of aspects of the white nationalism problem.
11:32 pm
some of that was for online, some of that was on civil society. you had five minutes of questioning going back and forth . in some ways the most important thing coming out of that hearing was the youtube livestream. the second-most was the chairman down one of the conservative commentators on the panel. we did not learn a lot about tech policy we do know before. emily: youtube released a statement about that issue saying hate speech has no place on youtube. have invested in technology to remove hateful comments and video. we disabled comments on the livestream of today's hearing. david, hearing another apresentative asked is it hoax, that is part of the problem. what is real, what is fake? what is fake and what is not? simplyw, is this problem
11:33 pm
too big for tech and government? david: it is a massive problem. but when you have a congressman like him asking if it is a hoax, it is really an attempt to disseminate fake news on the congressional hearing floor. so, it is not fake. this stuff happens. there is an enormous inability in congress to really face up to what is really happening, but on the other hand, a huge inability on these companies part of knowledge how badly they are doing this job. it really distressed me that facebook, in the form of the guy testifying, and google when they made their statement about youtube, saying there is no place for hate speech on these platforms. there is clearly a space for hate speech on these platforms. what they should be saying is we are deeply distressed that our inability thus far to restrain the problem. it is inexcusable to me they cannot own up to the fact that they are failing. they have to be honest with themselves. they are not doing the job they
11:34 pm
need to do. the incident with youtube in the hearing today was a classic indicator. emily: right. and also an example of how the folks driving this are humans. hate and radicalization existed before the internet and has taken on greater velocity with the rise of these platforms. take a listen to what christian clark had to say. she made a very important point. >> without question, they are using online platforms to recruit new members, activate followers, target communities, organize rallies, stream their murders and incite violence. instead of hiding under hoods, they now organize behind computer screens. emily: what has been the company's response more broadly to these issues of recruitment, of the fact that -- you know -- youtube did not create white
11:35 pm
nationalism, but it moves more quickly and stretches further with the rise of the internet. garret: one of the big concerns is whether youtube, the recommendation algorithm, might pick someone who doesn't know much about these things. start showing the videos and they go down these rabbit holes and potentially become radicalized in that way. youtube has said that videos they have identified as potentially along the lines, they will not show them in recommendations. but if someone specifically wants to see a video, whether it is a conspiracy theory video or videos that are outright hateful, they get off the platform. there is a lot in the in between zone and has connections, but not obviously hateful in the video itself. if people want to look for those things specifically, they will not censor that. at the end of the day, youtube and the other platforms have not budged regardless of the changes they have made from the core position that they see
11:36 pm
themselves as a town hall, an open platform for people to talk. even thinking that putting comments on this hearing was a good idea in the first place shows where they are operating from. let's have a format for people to talk about and respond maybe in a civil manner. of course, the first comments are immediately to degenerate. emily: the tech companies themselves did not say much of note, but there was this from facebook's policy director about whatsapp and how they tackled these issues. >> whatsapp has its own policy policies that go towards comment. they are working with law enforcement and they do often. emily: david, i thought it was interesting that he punted and said well, whatsapp has its own thing. there is an interesting question about how whatsapp handles the issues when the service and content is encrypted.
11:37 pm
which i assume makes it much more difficult to flag. what did you make of that? david: they are asking him how the company he works for handles this problem. and he says they have their own policies. wait, you are them, so why are you saying that? that is a really disturbing, typicalanswer which is of the way facebook employees testify and conduct themselves in interviews, unfortunately. they keep saying the same non-things over and over again. but it is really scary to the degree you worry about this problem, it is scary that all vision the facebook mark zuckerberg laid out, where the services could potentially be encrypted and much harder for external observers, whether facebook itself or law enforcement, to get any visibility into. it is true whatsapp is a very abusive system that it is easy
11:38 pm
to distribute toxic content on because nobody can see what is happening, except in metadata, which allows facebook to detect patterns am a but in many parts whatsapp has been the most socially destructive platform. emily: interestingly then, the facebook policy director will be testifying tomorrow before the senate committee on these issues. a representative of twitter will be there as well, but axios has reported that google's witness has been rejected by the senate judiciary committee and won't the accepted as a suitable witness to testify. what do you make of that? >> well, it is very interesting because it is not the first time a senate committee has turned down a google witness. if you remember back in the fall, google wanted to send ken walker to a senate intel committee hearing and they said that they wanted someone else,
11:39 pm
and eventually they were able to get the ceo. so that is very interesting, but what i think what will be interesting about this hearing tomorrow is it will be a little different. today was about not doing enough to moderate some of the horrible stuff on facebook, on youtube. tomorrow is going to be about taking down too much. and what it goes to is the anger a lot of lawmakers are hearing feeling about these platforms, a lot of users are feeling about the platforms. sometimes they are doing too much, sometimes too little. there is a trust cap there and a lot of anger. that is what they were dealing with in washington this week. emily: i know you will be all over that senate judiciary committee hearing tomorrow. thank you so much, ben brody. gerrit de vynch. and david kirkpatrick. as always, great to have all of you here on the show. well, as we mentioned earlier, softbank has launched a $5
11:40 pm
billion tech fund focused on latin america. but the japanese tech giant is not the only investing in the one region. according to the association for private capital investment in latin america, the region drew a record $1.98 billion in venture capital funding last year. scarlet fu and caroline hyde spoke with the managing director of one group about latin america and softbank's latest fund. take a listen. >> latin america is the next big thing. we will always be looking for the next billion users online. and we have seen that happening in u.s. and china and india and indonesia. we think that brazil and latin america are next. >> i am interested -- we were just debating and discussing how softbank once again is doubling down on tech startup investing, another $5 billion being thrown at latin america, another $100 billion vision fund. how does the whale that is
11:41 pm
softbank, the vision fund, strengthen, make it for people trying to get into the startups? hans: we want to see more softbank funds coming to latin america. in order to grow these unicorns, it takes hundreds of billions of dollars to make it work. more capital to follow the founders to deliver and build great businesses. forre early-stage investors the first part, so we are in their early. usually, we're there before softbank does. they have been a great partner for us, with this, and other regions of the world. >> let's talk about one of your investments and latin america. you may the largest series a investment in yellow, which is based in brazil and known for its bike sharing service. the idea is urban mobility and really leveraging the promise of that. how do you go about doing that when so much of the population is un-banked and don't have smartphones they can use to tap into urban mobility? here are the two ways we
11:42 pm
think about it regarding yellow. one, we are seeing ridesharing is not limited to cars, but also bikes, scooters, and other forms of transportation. we invested in grab in southeast asia. di, linen investor in di since 2017, so investing in yellow was a continuation of believing that scooter sharing, bike sharing is a global phenomenon, especially in huge emerging markets with large populations and cities. huge markets. the second thing is we think we want to be in markets where it is underbanked. consumers will be able to top off money into the mobile wallet it in order to build the business. we are an investor in alibaba. financial, alit pays a huge part of the growth.
11:43 pm
we think this model can be replicated in southeast asia and india. >> i like the way you put it, it can be replicated. you made a lot of investments globally in urban mobility. is there a lesson from asia to , from north america, that you cannot apply to a market like latin america? hans: i think people always try to look for differences, actually similarities are much more common. we have large rising middle class. you have a lot of consumers getting online on the smartphone. there is a chance to build a native digital business with very similar business models. a lot of the consumers worldwide have more in common than they are different, so we think what we're seeing in silicon valley, especially china, have great parallel lessons for us to look at. >> let's talk about lessons being learned right here, right now when it comes to the ipo market and exits we are seeing. lyft opening up the herd of
11:44 pm
are invested you in a lot of these unicorns looking to come to the market. i am thinking slack, pelaton, airbnb. are you positive about where the market is for these ipos? hans: since iphone started in 2007, we have a 12-year run of smartphone penetration around the world. now the world has 4.4 billion users on the internet. so it has been a great base to build businesses to leverage internet for growth. peleton is a great examples. zoom, a company we are not in, is also an example. i think over the next year or two years, you will see a lot of interesting tech ipos in a timeframe where a number of which we have never seen before. the next two years will be truly extremely exciting. >> does that mean the ipo does
11:45 pm
window closes after those two years? hans: [laughter] a lot of companies ipos now started in 2008, 2009, 2010. these businesses have taken advantage of the fast growth of smartphones. they are coming up for ipo's. we looka lot of them, at tech and internet, its impact will continue even beyond the next two years. right now in latin america, less you have less than 10 unicorns. india, less than 30. you look at china, 113. u.s., 150. so, there is a reason for southeast asia, india and long latin america, you can't see more coming up with the next decade. we are bullish on what internet and tech will do. emily: bloomberg's scarlet fu and caroline hyde with hans. coming up, china's war on the crypto industry. what beijing plans to ban next. this is bloomberg. ♪
11:46 pm
11:47 pm
11:48 pm
♪ emily: another blow to the cryptocurrency industry in china. beijing signaled it plans to ban crypto mining and wants to abolish the whole sector. max chafkin has followed the story in joins us now. interesting, but what is it? 70% of bitcoin mining used to be based in china, so what happens if they ban it altogether? max: this is something the chinese government has been signaling for some time. on exchangesg down and ico's in 2017. last year, signaling it might try to crack down on this. a lot of these big mining companies have already started with opening facilities in
11:49 pm
other countries, often places that are close to hydropower , which has continuous power for mining. so you would expect that to accelerate. it is obviously not a great development for some companies which manufacture a lot of mining rigs and operates these kind of server farms in china and elsewhere mining the currency. emily: now, authorities are concerned about things we have talked about. many regulators are concerned about speculation fraud, but also energy consumption. how much energy does it actually take to mine bitcoin? max: it is a lot. the numbers are in dispute. i don't have that off the top of my head. i think what is going on is that the chinese government looks at bitcoin as a threat on a couple of fronts. one, as you said, is energy usage. these bitcoin miners have been using the cheap, coal power that china regards as a strategic
11:50 pm
resource, and also an environmental threat. the other piece of this is bitcoin is obviously a decentralized technology. the vision of these crypto heads is a decentralized internet where governments will not have much power, and that is the opposite way the chinese government has been pushing and in all sorts of directions. at the same time, you have china pursuing these aggressive, heavy-handed approach is to internet censorship. you have a crackdown on things like bitcoin. emily: all right, max chafkin, thank you for continuing to cover this story. i appreciate it. you can read all of the stories he writes and edits on bloomberg morhear more and here every saturday and sunday on bloomberg television and radio. still ahead, apple has unveiled its credit card with very little details. so, when a cardholder wants customer service, who will they call? apple or goldman sachs? we will discuss, next. this is bloomberg. ♪
11:51 pm
11:52 pm
11:53 pm
♪ emily: 16 parents in the u.s. college cheating scandal, including former tpg managing partner bill mcglashan, were indicted by a federal grand jury as prosecutors aggressively pursued the biggest admission scam they have taken on. former private equity manager is a new charges, one charge of money-laundering conspiracy. the parents will be required to appear in court in boston to enter a plea. the judge may also set a trial date. several other parents have already pleaded guilty to similar charges. well, just last month, apple unveiled a sleek, titanium credit card at its flashy forum. -- services event, hoping to of been an industry, much like it did the phone business. the problem is apple and goldman sachs are relative newbies to consumer credit.
11:54 pm
apple has dabbled through its mobile payment service, apple pay. goldman markets personal loans, but what about customer services and statements? to discuss, i want to bring in mark gurman. you are taking a deeper dive on what this actually means for apple. why would apple want to expose itself to credit card disputes, financial regulations and all that messy stuff that comes with it? >> that is a good question. the simple answer is they probably would not. that is why, as our story indicates today, they are handing off of that for all intents and purposes to goldman sachs. goldman sachs will have call centers to deal with disputes. they are going to handle the distribution of statements. of course there will be a panel through apple pay app, but all the financial stuff, the nitty-gritty, will be done by goldman sachs. they will support, but that will tap into the goldman sachs representative. to call apple with a concern
11:55 pm
about your applecart, they will connect you to goldman sachs if it touches on statements and disputes. emily: do you think that apple can transfer the sort of aspirational nature of the apple brand to a credit card? mark: yeah, i really do. with thehe integration wallet application on iphones and being able to see a breakdown of your spending will be powerful for a lot of people. there are so many apps, like mint, to manage her finances. i have tried a bunch of them but none of them are very good, but it seems like apple's interface will be one of the simplest efforts yet. that theyst for yo will get a lot of customers. emily: you and i were at the event where apple unveiled its content streaming plans. a lot more questions than answers, but certainly a lot of celebrity funk.
11:56 pm
over the last several days since that has been announced, what has been the buzz in hollywood, especially with disney coming out with its service on thursday? how optimistic are hollywood insiders about apple? mark: everyone wants to know the price. they want to know what apple will charge for this thing. i think it will be around $10 to match the apple news plus service come apple music, and other services. down the road, i'm expecting them to bundle it altogether. right now, it is super-early. we have not seen much of the theret, but we do know are a lot of proven players here, but will that be enough to get people to subscribe? in my opinion, it will only take one, two, or three hits for people to be glued to this thing. until they have a hit, they will have a tough road ahead. emily: all right. well, they have reese witherspoon and oprah. so two things going for them. we shall see. mark gurman, thank you for stopping by. that does it for this edition of "bloomberg technology." we are live streaming on twitter. you can check us out there @technology.
11:57 pm
you can follow our global news breaking network tictoc on twitter. this is bloomberg. ♪
11:58 pm
11:59 pm
12:00 am
announcer: the proceeding is a paid advertisement for sup erbeets. >> i'm dayna less from the dana show. over the years, you have seen the interview cool people. today is no different. i'm speaking with dr. nathan brian, one of the leading minds in nitric oxide research. i recently went through a health breakthrough with my energy and stamina for

12 Views

info Stream Only

Uploaded by TV Archive on